Final answer:
The correct answer is a leveraged buyout, which is a method of acquiring a company primarily through borrowing, often using the acquired company's assets as collateral for the loans.
Step-by-step explanation:
An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing is known as a leveraged buyout. This financial transaction involves acquiring a company by using a significant amount of borrowed money (loans or bonds) to meet the cost of acquisition. Often, the assets of the company being acquired are used as collateral for the loans in addition to the assets of the acquiring company. Leveraged buyouts allow the investors to make large acquisitions without having to commit a lot of capital.
In the 1980s, leveraged buyouts became a common practice and were a characteristic feature of the financial sector during that period. However, these transactions carried substantial risk, especially if there was a downturn in the company's performance or in the overall market, which could lead to difficulties in repaying the debt.